Cana Glass Ltd. (CANAGLASS) - Director Report

Company director report

CANA GLASS LIMITED
ANNUAL REPORT 2004-2005
DIRECTOR'S REPORT
To
The Members,
Your Directors present herewith the Sixteenth Annual Report of your Company
together with the Audited Accounts for the period ended 31st March 2005.
1. FINANCIAL RESULTS (Rs. in Lacs)
Year Ended Year Ended
31/3/2005 31/3/2004
Sales and other income 1.11 0.00
Gross loss before interest
and depreciation (8.35) (58.39)
Add: Interest and finance charges (198.97) (205.84)
Depreciation (43.63) (43.72)
Net loss (250.94) (307.95)
Add: Loss brought forward (3107.88) (2799.93)
Loss C/F (3358.82) (3107.88)
2. DIVIDEND
Your Directors do not recommend any dividend on the Equity Share Capital of
the Company as the company is having accumulated losses.
3. OPERATIONS
The operations of the company has shut since 28th February 2003 due to
disconnection of power by the MSEB. The management is constantly trying to
raise funds from private financiers for the purpose of One Time Settlement
with the IDBI and UBI and for restart of the production operations at the
plant.
The Board for Industrial & Financial Reconstruction (B.I.F.R) in its
hearing held on 01.07.2004, issued an order for winding up of the Company
u/s. 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.
The Company has filed an appeal with the Appellate Authority of Industrial
and Financial Reconstruction under section 25 of the Sick Industrial
Companies (Special Provisions) Act, 1985 along with a suitable
Rehabilitation Scheme. The said appeal is registered with the authorities.
The Rehabilitation Scheme envisages an One Time Settlement with the IDBI &
UBI. The management is constantly trying to raise funds required for OTS
and restart of the production operations. The management was successful in
arriving at a One Time Settlement with the IDBI & UBI, full payment towards
the same is still pending.
4. DIRECTORS
Mrs. Sunita Hariharan retire by rotation at the forthcoming Annual General
Meeting and being eligible offer himself for re-appointment.
5. CONSERVATION OF ENERGY. TECHNOLOGICAL ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
In terms of Section 217(1)(e) of he Companies Act, 1956 read with the
Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988, your Directors wish to state that the same is given in the
Annexure forming part of this Report.
6. FIXED DEPOSITS
The Company has not accepted any deposits from the public.
7. PARTICULARS OF EMPLOYEES
Particulars of Employees as required under Section 217(2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975, as
amended is not given as there was no employee drawing the salary as per the
limits mentioned in the said Section and Rules.
8. CORPORATE GOVERNANCE
Your Director wish to state that since the Company is non operational due
to various reasons as stated above, the Company is not in a position to
implement any of the provisions of the Corporate Governance.
9. LISTING OF SHARES
The Company's shares are listed on Mumbai Stock Exchange. The Company has
not paid listing fees for the year 2002-2003, 2003-2004, 2004-2005 & 2005-
2006.
10. INSURANCE
The insurance cover on assets of the Company are yet to be renewed.
11. HUMAN RESOURCES
The Company appreciates the value of maintaining high morale amongst its
employees and has always endeavored to keep it at highest level.
The management is having detailed discussions with Union and its Committee
Members for arriving at a settlement amount of the dues payable to the
workers.
12. AUDITORS
M/s. P.R.G Pai & Co., Chartered Accountants retire at the forthcoming
Annual General Meeting and being eligible offer themselves for re-
appointment. You are requested to appoint them and fix their remuneration.
13. DIRECTORS RESPONSIBILITY STATEMENT
That in the preparation of the Actual Accounts, the applicable accounting
standards has been followed alongwith proper explanation relating to
material departures.
That the directors had selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit or loss of the
company for that year.
That the directors had taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of this
act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities.
That the directors had prepared the Annual Accounts on a going concern
basis.
14. ACKNOWLEDGMENT
The Board wishes to place on records its appreciation to all its bankers,
shareholders, creditors, customers and employees for their co-operation.
By Board of Directors
For CANA GLASS LIMITED
MANAGING DIRECTOR
Registered Office :
66, Udyog Bhavan,
Sonawala Road, Goregaon (East),
Mumbai 400 063.
Place : Mumbai
Dated : 30th August 2005
ANNEXURE A
Information as per Section 217(1) (e) of the Companies Act, 1956 read with
Companies (Disclosure of Particulars in the report of Board of Directors)
Rules, 1988.
A. CONSERVATION OF ENERGY
a. Energy conservation measures taken.
1. The company has gone in for double pass regenerative furnace which is
relatively fuel efficient.
2. The factory Shed has been designed with a view to maximise utilization
of natural light in the plant. The plant also has a forced ventilation
system which obviates the necessity of Air Circulators thereby conserving
energy.
3. Appropriate gauges have been installed to control and monitor the
consumption of LPG and Furnace oil.
4. Motors of optimum capacity are being used.
b. ADDITIONAL INVESTMENTS AND PROPOSALS FOR REDUCTION OF CONSUMPTION OF
ENERGY
Efforts are being made to locate the other possible areas where the
conservation of energy can be effected. Further, investments will be
considered after identification of these key areas.
c. IMPACT OF THE ABOVE MEASURES
Energy consumption is under strict control.
d. TOTAL ENERGY CONSUMPTION AND ENERGY CONSUMPTION PER UNIT OF PRODUCTION
FORM A
01.04.2004 01.04.2003
to to
1. Power & Fuel consumption : 31.03.2005 31.03.2004
Electricity -
Purchased (Units) Nil Nil
Total amount (Rs.) Nil Nil
Rate per unit (Rs.) Nil Nil
High Speed Diesel :
For: Generation of Power
Purchased (Ltrs) Nil Nil
Total amount (Rs.) (Inclusive of
Generator Rent) Nil Nil
Rate per unit (Rs.) Nil Nil
Furnace Oil
Consumed (Ltrs) Nil Nil
Total Amount (Rs.) Nil Nil
Rate per Ltrs (Rs.) Nil Nil
Liquified Petroleum Gas
Consumed (Kgs) Nil Nil
Total amount (Rs.) Nil Nil
Rate per Kgs (Rs.) Nil Nil
Light Diesel Oil
Consumed (Ltrs ) Nil Nil
Total amount ( Rs.) Nil Nil
Rate per Ltrs (Rs.) Nil Nil
2. Consumption of power and fuel per unit of production not ascertainable
as the company's products are of assorted sizes.
B. TECHNOLOGY ABSORPTION
e. Efforts made in technology absorption are as under:
FORM B
RESEARCH & DEVELOPMENT (R & D)
1. Specific areas in which R & D carried out by the company - Thrust areas
identified for carrying out R & D activities included :-
a. Product improvement b. Product development c. Process improvement
2. Benefits derived as a result of above efforts - R & D efforts undertaken
by the company have produced positive results and the quality of the
product has been accepted by the Consumer industries.
3. Future plans of action : To effect further improvements in the areas
already selected for carrying out R&D.
TECHNOLOGY ABSORPTION ADAPTION AND INNOVATION
1. Efforts in brief, made towards technology absorption , adaptation and
innovation :-
The company has fully absorbed the technology for production .
2. Benefits derived as a result of above efforts:
The aforesaid efforts has resulted in attainment of satisfactory quality
standards
3. Information regarding imported technology :
Wholly indigenous technology is being used.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO.
a. Total foreign exchange used and earned .
i. Used-CIF value of imports of Raw material-Nil (Rs. Nil)
ii. Earned-FOB value of exports Nil (2003-2004 Nil)
For and on behalf of the board
(P.K. PILLAI)
Chairman & Managing Director
Place : Mumbai
Dated : 30.08.2005